Valuation risk of a security—uncertainty about its fair value—is a subject of considerable concern in the mutual fund industry. If funds report different values for identical securities, investors cannot easily compare performance. Yet it is not unusual to see identical illiquid stocks,...

Scholars have roundly criticized disclosure as a regulatory regime over the past decade for good reason. Disclosures—whether describing the terms of a loan or the risks of investing—purport to inform consumers. But who actually reads disclosures? We argue that mutual fund disclosures are...

We examine whether ESG funds’ investment decisions are sensitive to firms’ environmental disclosures, beyond summary ESG ratings. We create our measures of environmental disclosure using bigrams extracted from the Global Reporting Initiative (GRI) standards trained against authoritative...

I study whether increased transparency of mutual fund portfolio disclosures affect fund managers' risk taking. Exploiting the staggered adoption of the SEC's Form N-PORT, which improved the quality and quantity of information on fund strategies and risk profiles, I find a reduction in risk...

We study the consequences of mandatory sustainable finance disclosure regulation (SFDR) for the money flows and investment behavior of mutual funds. We find that EU-regulated funds significantly improve the ESG profile of their investments relative to US mutual funds, holding for both the retail...